it’s not a beanstalk and you are not jack, it’s silver. I’m already ecstatic that it’s trading in the 40’s. It’s stupid how much I made so far just this year on such a small position. 46 is higher than I expected it to be even in a full blown devaluation. So I’ll do what I’m best at and offend everyone equally tonight.

There are a lot of people getting into silver now who are the same people who get into everything else after it’s too late. You have to get in on the first stage amid ridicule and denial and you have to be right. It’s a tall order. This is why so few are any good at it. First of all, you have to live in the first stage of truth.

Meet The New Bolsheviks
[filed under: meet the first stage of truth]
EarthBlog News
4.20.2011
They own you and project their power through your government via control of the money and effective ownership of the entire political bodies of nation states. They allocate the wealth. They own the media from which to manufacture all necessary consent for their actions against you, your country and your way of life. They believe they are gods on earth and that you are to be used until you are used up, only for their benefit. You are actively encouraged not to think, and not to notice. – Meet the New Bolsheviks
Address : <https://earthblognews.wordpress.com/2011/04/20/meet-the-new-bolsheviks/>

Silver in the 40’s? I wouldn’t be in it unless I already was sitting on a huge cushion provided by it. Watch the graduate if you need to. “Plastics”. Every time someone writes about silver lately I read “plastics”.

So I sold my silver futures today. Push of a button. It’s the first time I haven’t been in the market since I can remember. Maybe it was the wrong move. That said, I ‘m not contemplating selling any from under my mattress so I still have a substantial long term interest in it.

Maybe I’m missing a spectacular move from here. Maybe. That said, I can go buy a tractor with what I made ytd and have some left over for a greenhouse. My point there is that I would have never forecast silver to be here at this time. I liked it in single digits and low double digits when everyone else didn’t and had a million reasons why all justified by the price. Now that everyone else is foaming at the mouth for it, maybe they’re paying too much? It’s silver, it’s not a money tree.
Not to bring down any of the silvertards, but I was fawning over it at five, then nine dollars. You remember. Not as much at 46. The people who are buying now are buying from the professionals or even amateurs who used to be professionals. The people who buy low and sell high. The bull side will tell you short squeeze, running out, anticipating hyperinflation wop wop wop. While any or all of those things may be true, it you want it bad enough even at today’s prices you can get it out of the ground for 15 dollars an ounce. If it does go to $100 you’ll see me in my new tractor digging.

So I’m not saying it won’t go to $100 or even higher, and I’m not even saying it will ever come back down in US dollars, but if it does so without a systemic reason (like a devaluation) then it’s set for a tumble and a lot of sad faces who at this time happen to know everything.

So I wanted to get out for now before any of these psych factors like the hunt brothers high or $50US lose their magnet effect on the homo sapien tards. What I hope is that I’ll get a chance to pile back in after someone has their way with it on the short side after this parabolic move which sucked in mom and pop’s 401k.
At any rate, now at least I can tell myself how smart I am every day instead of wearing a sad face along with the rest of the silvertards. I’m out. My clients are out. Clean break, done. For the record, I sold between 46 and 46.04 basis Jul futures.

If you look at the longer term charts, its starting to look just about every other chart that went parabolic, all of which subsequently collapsed. So I think silver has to pick up even more momentum in some kind of a fantastic blow off, or it’s nearly done for now and I could easily see back in the 20’s or 30’s and still be well within the context of a major long term bull market. I would be an enthusiastic buyer between 20 and 25 because I do agree it’s possible we’ll never see it below that in US dollars again.

All I’m saying is it went more than far enough, more than fast enough for me and now it looks parabolic and dangerous and I don’t need that much excitement any more. I thank the god of the markets and the participants for now seeing things my way.

I hope I have been convincing that JPM could short this thing to infinity with funny money left over, and that the price in itself will not take down any FED member. They make the rules and they don’t care what any of us dopes think or how much we lose. I think about my neighbor who took his own life a couple of years ago now after his self employed business of 30 years was failing because of the housing crisis here. We lived 10 feet from the guy. I’d like to see his wife come testify in front of blankfine or diamond or any of those other maggots who could care less.

So on a more uplifting note, here’s some postmortem trading reflection. I took out my 200 year old king george IV fork I bought for $14 on ebay in the UK when silver was $9 and everyone hated it. I have it here right now. Sometimes I take it out to polish it using only my hand. Thats what a good deal looks like. It’s a desert fork and I was looking at all the teeth marks on the underside of the fork. King George must have had a lot of hungry guests. The thing is literally 200 years old as verified by the makers marks and it’s very cool to handle while thinking about which historical personalities used it for desert and how large their bites must have been given the size of a desert fork which in this case is king sized and weighs almost 2 ounces. I think about them stuffing their faces and talking with their mouths full while there serfdom was scouring for bread.

One silver fork that used to be a member of the kings court. Ask me how my investment in silverware went up 500 percent. Maybe I should write a book. Buy stuff everyone else hates. The more they hate it the more you’re going to make if you’re right. If you’re wrong, then you’re going to lose everything and they were right to hate it. I never said it was easy.

Silver Surges Over $46.25/oz as Rumours of a Short Squeeze and Cornering Market Gain Credence; Speculators Smell Blood
Gold and silver have surged to new record nominal highs in dollar terms (all time and 31 year) with the dollar falling sharply on international markets. Silver has continued to surge in all currencies and has surged to a new record nominal high of $46.25/oz (£27.85/oz and €31.54/oz) on growing rumours of a short squeeze involving a billionaire or state interest attempting to corner the silver market (see FT news story below).
Address : <http://www.zerohedge.com/article/silver-surges-over-4625oz-rumours-short-squeeze-and-cornering-market-gain-credence>

In no event shall the editor, affiliates, or contributing authors be held liable for any special, incidental, or consequential damages, whatsoever arising from the inappropriate use of the information contained herein as investment advice. If the information contained herein is being construed by the recipient as investment advice, the recipient is hereby advised that he or she is using the information inappropriately and incorrectly.

In no event shall the editor, affiliates, or contributing authors be held liable or in any way responsible for your health if the news is bad.

IF YOUR NAME IS NOT CURRENTLY ON THE OFFICIAL DISTRIBUTION LIST THEN YOU ARE NOT THE INTENDED RECIPIENT OF THIS PUBLICATION. To avoid possible copyright violation you are advised to destroy the document and immediately contact the editor with information regarding how you obtained the document.

Sunday night I was talking about the idea of gold being allowed to rise as policy. The previous gold highs were $1,258.30 for a close and $1,263.70 intraday. I don’t know if they’re going to call today a new high, but it’s a start. I expect there are a lot of buy stops from zero to $20 or so above here. Those haven’t been tripped yet so if it’s allowed to sail through that without a compliance event, we could be looking at this move to $1500 or so I was anticipating sooner rather than later. In re reading the previous blog, a lot of those ideas were good ones to mull over. One is the idea that it’s moving like an iceberg. The corporate media wants you to serialize a long chain of events and use your memory hole to conclude nothing is related. When you put it all together though, it’s all part of one big thing moving at the speed of an iceberg. The next thought is that if they need asset price inflation, then that is only good for people who have assets which are not so much the people any more but the banks. So the required policy, asset price inflation, will only inevitably serve to increase the rich poor divide or to exaggerate what is already occurring which is La Route De La Servitude. Relating to my idea about allowing gold to rise, maybe QE 2 will take place as just encouraging certain policies like asset prices rising? They can accomplish all this by allowing gold to rise and keeping interest rates low….different arms of the same policy. So what I’m saying is picture another commodity driven boom. Stocks up, commodities up, dollar down gold up and all that. Here’s a very interesting article from ZeroHedge where Jim Rickards, who I don’t know…discusses the same thing I was discussing on Sunday….the idea that the FED will let gold rise to accomplish asset price inflation. He also has an outlook on the stock market very similar to mine….that it is no longer a place for serious money.

Jim Rickards Tells His Clients To Get Out Of Stocks And Discusses The Fed’s Final “Golden” Bullet[filed under: equity markets are a joke]Submitted by Tyler Durden09/06/2010 “Markets have ceased to function as they are intended – traditionally a place to exchange values, but more importantly to perform price discovery (people rely on markets to tell them what to do or to at least give them some guidance). What’s happened is that all the markets have become so badly distorted that their price discovery function and therefore the information content around it no longer has any value. The market has become self-referential, an algo playing itself out, almost the way you would run a self-recursive equation on a computer and you get very unpredictable results from very simple equations. It has degenerated into a joke.”

Next, Bloomberg had an interview today with Michael Burry who said housing is an artificial market (agreed) and stated he now has most of his assets in gold and farmland with a water source. Interesting.

Michael Burry Is Long Farmable Land, And Agrees With Paulson On Gold (But Not The Other “Recovery” Themes)[filed under: leaving the Wall Street casino]by Tyler Durden09/07/2010Michael Burry, who needs no introduction, was on Bloomberg TV earlier discussing his latest investment allocation, which no longer focuses on shorting real estate via the cheapest possible instrument, and instead is going long cash assets in the form of farmable land (oddly enough, not multi apartment commercial real estate), small tech, and, yes, gold. “I believe that agriculture land — productive agricultural land with water on site — will be very valuable in the future. I’ve put a good amount of money into that.” Address : <http://www.zerohedge.com/article/michael-burry-long-farmable-land-and-agrees-paulson-gold-not-other-recovery-themes>

I wanted to break down the farmland idea a little bit since I’ve spent so much time on this issue.

-You definitely want water. The more the better and the cleaner the better. It should be at least good enough for irrigation and feeding animals. I wouldn’t buy raw land without a water source. Wells don’t count. Everyone has to have a well.

-desirability is more important than $ per acre. You want land that is desirable to you and possibly someone else for one or more specific current or future reasons.

-Low taxes are an extremely important feature for long term ownership of land

-other cost of carry items have to be low. Land encumbered by any deed restrictions, mineral rights restrictions, HOA’s or zoning restrictions is not desirable. For some investment purposes, land inside city limits would be desirable and in most cases no.

-land should possess natural resources, the more the better. Rights to the resources are important. This includes, water, minerals, rocks, timber or good quality productive farmland. All of the above is better If I had to pick only one, it would be productive farmland with water

-road frontage is desirable. Rural land with road frontage is likely to appreciate fastest and has the possibility of becoming valuable for that reason alone.

-private non shared access (your own access road on your own property) is important. Acreage delineated by natural features is helpful.

-land should be accessible in all weather and by heavy vehicles of at least 60,000 pounds (the weight of a dump truck or cement truck).

Steep entrances or exits are an issue where it snows and are in general not desirable.

-land defined by the government as flood plain land is undesirable and likely to be encumbered by future restrictions on usage and should not be purchased.

-topology is important. if hilly or mountainous, orientation to mountain or sun is important. North slopes are colder. In some areas, some slops will grow some things and others won’t within a geographical areas. Land that is too steep is unusable for most purposes. Often the “long view” also includes steep unusable slopes. This can be offset by the fact that land is usually measured in the horizontal plane so steep slopes give land without acreage.

-soil type or types is important

-if land has timber, timber types and age are important, so are state laws regarding harvesting.

-In the US, a farm must have 10 or more contiguous acres to be legally defined as a farm if desired. It is therefore wise to buy a minimum of 10 contiguous acres. Sizes of 10 to 60 acres are the sweet spot although not in service larger industrial/commercial farmland in the hundreds or thousands of acres could also be considered.

-state and county restrictions along with any laws or restrictions regarding out of state ownership must be investigated. For example, some counties, cities etc have ordinances or laws against various types of animal farms. So if you buy something as “farmland”, no serious farmer can use it as such so it’s really not farmland even though it is capable of being farmland.

Guest Post: Dangerous Economic Misconceptionsby Giordano Bruno Neithercorp Press 09/07/2010For many years, economics in the U.S. has been approached with a ‘game show’ mentality. Wild and backwards speculations on financial growth have become the norm. The daily ‘Wall Street Journal’ and ‘Washington Post’ musings of international bankers and their servile lackeys are treated as divination, rather than the bamboozle they actually signify. If you play along and contribute to the mechanics of the great casino, then you are treated as a “serious” economist or analyst, regardless of how many times your advice has been completely off the mark, or how many middle-class nest eggs you destroyed in the process. If you question the conclusions of the pundits and talking heads, or, God forbid, question the validity of the system itself, you are immediately marginalized as a “kook” or “conspiracy theorist”. The workings of the mainstream financial world are more inbred than Hollywood and Washington D.C. combined. Cable news providers like MSNBC and CNN have set the American people up for fall after fall; sometimes because they were blinded by their own bells and whistles, sometimes because they deliberately and blatantly lied in order to create engineered market sentiment. In the wake of the initial credit market collapse of 2008, these people, who didn’t see it coming and denied it was happening, still have their jobs, still have their TV shows and news columns, and, are still generally blowing smoke up our posteriors. Address : <http://www.zerohedge.com/article/guest-post-dangerous-economic-misconceptions>

Dangerous Defeatism is taking hold among America’s economic elites Goldilocks has played a trick on America. Growth is not warm enough to prevent hard-core unemployment climbing to post-war highs and sticking at levels that corrode the body politic, but not yet cold enough to overcome the fierce resistance of the Fed’s regional hawks for a fresh blast of stimulus.

Food Fascism in the Land of the FreeEric BlairThe food industry is no longer a free market. In fact, I’d go as far as saying it’s becoming the most glaring example of corporate-government fascism in America. Actual monopolies fully control the basic building blocks of the food that makes up the majority of the American diet — and no one seems to care. Simply put, those who control the corn, wheat, and soybeans control all food, since all livestock and all processed foods are dependent on those food resources. These monopolies place their cronies in government regulatory agencies like the FDA and USDA to weed out their competition through excessive regulation. Currently proposed legislation are textbook examples of their methods. Address : <http://www.activistpost.com/2010/09/food-fascism-in-land-of-free.html#more>

This Year, US Public Debt Could Reach End GamePublished on 09-04-2010 Source: Asia NewsFederal Reserve Chairman Bernanke issues the warning. Asian nations, China and India first, are no longer willing to purchase securities issued by the US Treasury, which this year has about US$ two trillion short-term debt to refinance. Beijing is buying gold instead. Milan (AsiaNews) – For at least four years, AsiaNews has sounded the alarm bells against the risks due to the huge size reached by speculative finance[1]. In 2008, we said that the attempt to save US banks could push the US debt beyond the point of solvency (see Maurizio d’Orlando, “US debt approaches insolvency . . .,” in AsiaNews 19 December 2008) [2]. Back them it could appear a bit overblown, but now even US Federal Reserve Chairman Ben S Bernanke is warning the US Congress about the danger. In a statement before the House Financial Services Committee,[3] he said that the US public debt might no longer be sustainable very soon. Financial jargon aside, the subtitle of an article by The Washington Times—Stage is set in U.S. for a Greek tragedy—says it all. Interviewed for the article, Bernanke says the United States is likely to face a debt crisis like the one in Greece sooner than later, “not something that is 10 years away”. In 2008, the size of the debt was such that it was quite clear that it was not sustainable. Now we have a timeframe to measure the likelihood of insolvency for the US public debt, and it is this year. The reason for that is described in an article whose title needs no explanation: “The bankruptcy of the United States is now certain”.[4] Address : <http://www.roguegovernment.com/index.php?news_id=22718>

In no event shall the editor, affiliates, or contributing authors be held liable for any special, incidental, or consequential damages, whatsoever arising from the inappropriate use of the information contained herein as investment advice. If the information contained herein is being construed by the recipient as investment advice, the recipient is hereby advised that he or she is using the information inappropriately and incorrectly.

In no event shall the editor, affiliates, or contributing authors be held liable or in any way responsible for your health if the news is bad.

IF YOUR NAME IS NOT CURRENTLY ON THE OFFICIAL DISTRIBUTION LIST THEN YOU ARE NOT THE INTENDED RECIPIENT OF THIS PUBLICATION. To avoid possible copyright violation you are advised to destroy the document and immediately contact the editor with information regarding how you obtained the document.